(C) Reuters. 5 Tech Stocks to Buy if the Market Crashes
With rising inflation, analysts are speculating that a stock market correction may be in the offing in the near term. Should that happen, we think it would be wise to bet on established tech stocks Apple (AAPL), Alphabet (NASDAQ:GOOGL), SAP (SAP), Applied Materials (NASDAQ:AMAT), and STMicroelectronics (STM) at lower valuations. The products and services these companies deliver are essential to the world and, hence, in the event of a broad market swoon, their stocks should rebound and deliver significant returns. Let’s discuss.While most tech stocks soared to unprecedented highs last year driven by investor exuberance, investors have been rotating out of tech stocks this year. This change in sentiment can be attributed to the reopening economy, which is motivating investors to seek undervalued cyclical stocks that have the potential to gain from the economic recovery at the expense of expensive tech stocks. Investors’ pessimism on tech stocks is evident in Technology Select Sector SPDR ETF’s (XLK) 6.5% gains so far this year compared to SPDR S&P 500 ETF Trust’s (SPY) 12.4% returns.
Given rising inflation, many analysts are speculating a stock market crash in the near term. Should that happen, it would be wise to scoop up the shares of quality tech stocks companies that look expensive now but might trade at a discount at that time. After all, the tech industry has the potential to rebound quickly from any slump given the increasing demand for its products and services. According to GoRemotely, the tech industry is expected to hit a $5 trillion market value by the end of 2021.
Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (GOOGL), SAP SE (DE:SAPG) (SAP), Applied Materials, Inc. (AMAT), and STMicroelectronics N.V. (STM) are expected to gain significantly in the near- to-midterm. So, we think it would be wise to bet on them at lower prices if there is a market correction.
5 Tech Stocks to Buy if the Market Crashes
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